Share tips and stock recommendations for the Australian (ASX) share market – buy, hold, and sell. Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.

This post is an extract from the newsletter dated 26 March 2018. You can access the full version of the article HERE.

BUY RECOMMENDATIONS

BHP
For those looking to trade the swings in BHP, we have picked the turning points well for readers. I had it as a buy last October, and then a sell in January with a view to buy closer to $28. Having hit my downside target near $28, we are now recommending BHP as a buy with a new target of close to $35.

SBM
At the end of last year, SBM managed to push through its 2016 high. It then consolidated above that high before breaking free again to resume the uptrend. The all time high for SBM is near $5 so we expect the shares to now rally towards that level.

HOLD RECOMMENDATIONS

NST
The trend for NST has been positive for over a year now, but with some decent pullbacks along the way. The share price underwent another consolidation at the beginning of this year, but we have now seen it break free of that. NST is in blue sky territory so it is unknown how high it can go for the moment. However, there is plenty of positive momentum for the time being.

CTD
February’s results have seen the stock explode higher on strong volume to trade at an all time high. It looks a bit overdone in the short term so we expect it to ease back, possibly establishing a baseline back near $24. After that CTD should then go on trending higher.

SELL RECOMMENDATIONS

MOC
Against a backdrop of rising house prices and lending, MOC has gone nowhere in the last couple of years. The peaks seem to be rounding out and the shares have fallen quite heavily to some minor support. MOC appears ready to break this support level and fall back towards the 2016 low under $1.80.

SPL
SPL is giving us a textbook example of a trend reversal. After rallying strongly at the end of 2017, they have now formed a shooting star reversal.Price action continues to look weak and I expect to see SPL enter a downtrend.

 

Current share prices available here.

You can learn more about technical analysis in this article.

 

Michael Gable is managing director of Fairmont Equities.

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Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.

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